Ground Transportation Stocks Q2 Teardown: Universal Logistics (NASDAQ:ULH) Vs The Rest

What Happened?

Shares of freight Delivery Company RXO jumped 6.1% in the afternoon session after the company presented at the Goldman Sachs Industrials and Materials Conference, where its commentary was well-received by investors. Events like these provide a platform for a company's management to communicate its strategy and outlook. The positive stock movement suggested that the commentary from this conference, as well as a separate UBS conference, resonated positively with the market. The reaction indicated that investors were encouraged by the information shared by the company's leadership, boosting confidence in its future direction.

Is now the time to buy RXO? Access our full analysis report here.

What Is The Market Telling Us

RXO’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 13 days ago when the stock dropped 3.2% on the news that markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

RXO is down 39.4% since the beginning of the year, and at $14.34 per share, it is trading 51.1% below its 52-week high of $29.31 from December 2024. Investors who bought $1,000 worth of RXO’s shares at the IPO in October 2022 would now be looking at an investment worth $682.67.

What Happened?

Shares of freight delivery company XPO jumped 3.6% in the morning session after an analyst at Bank of America Securities maintained a 'Buy' rating on the stock and increased the price target. The analyst, Ken Hoexter, lifted the price target from $151.00 to $158.00. This action signaled increased confidence in the company's future performance from the financial institution. Such positive commentary from analysts often encourages investors and can lead to a stock price increase, as it suggests a greater potential for growth than previously estimated. The new price target represented a possible upside of over 14% based on the stock's price at the time of the report.

After the initial pop the shares cooled down to $140.45, up 3.8% from previous close.

Is now the time to buy XPO? Access our full analysis report here.

What Is The Market Telling Us

XPO’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 6.3% on the news that the company reported a decline in key operating metrics for its North American Less-Than-Truckload (LTL) business for November 2025. The freight transportation provider disclosed that LTL tonnage per day fell 5.4% compared to the same month in the previous year. This drop was a result of two factors: a 2.2% decrease in the number of shipments per day and a 3.2% decrease in the weight of each shipment. This report signaled a continuing trend of slowing business, as it followed a similar 3.8% year-over-year decline in tonnage per day for October 2025. The weaker volumes suggested a potential impact from a contracting manufacturing sector.

XPO is up 6% since the beginning of the year, but at $140.45 per share, it is still trading 11.2% below its 52-week high of $158.20 from December 2024. Investors who bought $1,000 worth of XPO’s shares 5 years ago would now be looking at an investment worth $1,207.